central maine & quebec railway conditions of carriage · 2019-01-14 · cmq conditions of...

CMQ CONDITIONS OF CARRIAGE.2

ISSUED BY

Central Maine & Quebec Railway 700 Main Street Suite 3 Bangor ME 04401

CENTRAL MAINE & QUEBEC RAILWAY

CONDITIONS OF CARRIAGE

TERMS AND CONDITONS

FOR

RAIL TRANSPORTATION OF COMMODITIES

VIA

CENTRAL MAIN & QUEBEC RAILWAY

_____________________________________________________________________________________________

ISSUED MARCH 26, 2018 EFFECTIVE APRIL 14, 2018

AMENDMENT #2 January 1, 2019


ISSUED BY


_____________________________________________________________________________________________

Contents RULE 100 – DEFINITIONS ............................................................................................................................... 3

Rule 110 ‐ APPLICATION OF PEFERENCED PUBLICATIONS ............................................................................ 4

Rule 120 – General Application .................................................................................................................... 4

RULE 130 – ROUTING VIA CENTRAL MAINE & QUEBEC RAILWAY ................................................................ 6

RULE 140 – ABSORPTON OF CONNECTING LINE SWITCHING ....................................................................... 6

RULE 150 – BILL OF LADING .......................................................................................................................... 6

RULE 200 – TRANSPORTATION SERVICES ..................................................................................................... 7

RULE 210 – UNLOADING AND RELEASE OF EQUIPMENT AT DESTINATION ................................................. 7

RULE 230 – TRANSPORTATION CHARGES TO APPLY ..................................................................................... 7

RULE 240 – TRANSIT, DIVERSION, RECONSIGNMENT ................................................................................... 8

RULE 250 – PAYMENT OF TRANSPORTATION CHARGES............................................................................... 8

RULE 270 – FUEL SURCHARGE: RAIL MILEAGE BASED/HIGHWAY DIESEL FUEL ........................................... 9

RULE 280 – OVERCHARGE, OVER COLLECTION OR DUPLICATE PAYMENT CLAIM PROVISIONS ................. 11

RULE 290 – LOSS OF AND DAMAGE TO SHIPMENTS .................................................................................. 12

RULE 300 – EXTENSION OF CREDIT ............................................................................................................. 14

RULE 310 ‐ MECHANICAL PROTECTIVE SERVICE (MPS) .............................................................................. 16

RULE 320 – CHARGES FOR MECHANICAL PROTECTIVE SERVICES ............................................................... 16

RULE 330 – MIXED CARLOAD SHIPMENTS .................................................................................................. 16

RULE 420 – AGGREGATE RULE .................................................................................................................... 17

RULE 430 – INTERMEDIATE RATES .............................................................................................................. 17

RUEL 440 – ALTERNATION OF RATES .......................................................................................................... 17

RULE 480 – DISCLAIMER OF CONSEQUENTIAL AND SPECIAL DAMAGES .................................................... 18

RULE 500 – CHANGE IN PROVISION ............................................................................................................ 18

RULE 510 – PRIVATE EQUIPMENT ............................................................................................................... 18

RULE 520 ‐ SECURITY SEALS ........................................................................................................................ 19

RULE 530 – NON‐WAIVER ........................................................................................................................... 19

RULE 540 – GOVERNING LAW ..................................................................................................................... 19


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RULE 550 ‐ NO THIRD PARTY BENEFICIARIES .............................................................................................. 19

RULE 560 – NORMAL RAIL OOPERATIONS‐ORDER/NOTIFY SHIPMENTS .................................................... 20

RULE 570 – SEVERABILITY ........................................................................................................................... 20

RULE 580 – CARGO OWNERS AND COLLATERAL PARTIES .......................................................................... 20

RULE 590 – CMQ OWNED OR LEASED CARS USEF FOR ALTERNATIVE ROUTING ....................................... 21

RULE 100 – DEFINITIONS Held in Route

Held in Route is defined as any car, moving on a through rate which is held in route because of any

condition attributable to the consignee, or owner of the lading, including but not limited to storage,

partial unloading, to finish unloading, or fabrication.

Diversion/Reconsignment

The term “diversion can be used interchangeably with “reconsignment” and means any request received

by CMQ that requires a change in the Bill of Lading, Waybill, Service Order or other shipping documents

applicable to cars that are in CMQ;s possession as a line haul carrier.

Private Equipment

A rail car not bearing Railroad reporting marks.

Shipper/Consignor

Shipper and consignor shall have the same meaning for the purposes of these Conditions of Carriage.

The Shipper is the party that enters into the contract of carriage with CMQ or the originating rail carrier.

The Shipper may be acting on its own behalf or on the behalf of another party; however, whether as

principal or agent, the Shipper is bound in its own right to the terms and obligations of the Conditions of

Carriage. The Shipper might or might not be the owner of the lading. When acting as a disclosed or

undisclosed agent, the Shipper, the Shipper binds not only itself but also its principal to the terms and

obligations of these Conditions of Carriage. The Shipper or Consignor may file a claim with CMQ for loss

or damage to lading under Rule 290 below.

Consignee

The Consignee is the party entitled to receive the lading under the Bill of Lading contract regardless of

whether the lading is actually delivered to an “in care of” or other party pursuant to the directions of the

Shipper or Consignee. The Consignee may file a claim with the CMQ for loss or damage to lading under

Rule 290. By accepting a shipment or by the acceptance of the shipment by a party on behalf of or by


ISSUED BY


direction of the Consignee, the Consignee agrees to be bound by the terms and conditions of these

Conditions of Carriage.

Payor

The Payor is the party primarily responsible for the payment of freight and other charges arising

pursuant to these Conditions of Carriage. The Payor may be the Shipper, Consignee or some other party

who has entered into a credit or payment arrangement with the CMQ pursuant to Rule 300.

Rule 110 ‐ APPLICATION OF PEFERENCED PUBLICATIONS

Except where (i) inconsistent with a provision of this document or (ii) inconsistent with governing

contractual terms specifically agreed to by CMQ or (iii) otherwise inapplicable under their own terms,

the rules, regulations, charges and allowances of the following named publications shall. Along with the

terms of carriage specified herein, apply to all rail transportation undertakings of CMQ as specified in

Rule 120 herein.

Official Railroad Station List OPSL 6000 Series

Standard Transportation Commodity Codes STCC 6001

Official Railway Equipment Register RER 6412 Series

CMQ Mileage Tariff

Uniform Freight Classification UFC 6000 Series

CMQ Switching 8000 Series

Rules and Charges on Assessorial Services CMQ 8000 Series

Demurrage Rules and Charges CMQ 6000 Series

Central Maine & Quebec Railway

References to specific publications herein include successor publications.

Rule 120 – General Application

1. The provisions of this Document apply

a. To transportation when such transportation

i. Originates on CMQ and


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ii. Moves under single line rates or single factor, joint line, through rates offered

by CMQ itself or in conjunction with a connecting railroad as an exempt rate or

as a regulated common carrier rate; and

b. To the CMQ portion of through movement sunder AAR Accounting Rule 11 or other

combination or proportional exempt or common carrier rates. In the absence of a

separate contract specifically covering the transportation, the terms and conditions of

the Conditions of Carriage constitute a unilateral offering of such terms and conditions

of a bilateral contract between CMQ and its connecting lines on the one hand, and the

terms user of the transportation services on the other upon acceptance by such user.

Subject to the qualifications set forth in subsection (2) below, tender of shipments to

the origination carrier shall constitute acceptance of both the terms of service as set out

in these Conditions of Carriage and the rate governing the shipment.

2. Except where specifically provided otherwise by the governing contract or rate quotation, the

rate or rates for shipments moving under a single line rate or single factor joint line through

rate, where the transportation originates on CMQ, do not include non‐line haul services

(including, but not limited to demurrage, drayage, diversion, inspection, reconsignment,

stopping, storage, switching, transfer, weighing and other terminal or accessorial services). Such

services performed by CMQ shall be governed by Rule 200 of these Conditions of Carriage. Such

services performed by a non‐originating carrier or carriers shall be governed by the offering

comparable to the CMQ conditions of Carriage of the carrier performing these services and will

be billed and collected by the carrier performing the services.

3. When CMQ is not the originating carrier, but does participate in a movement under single factor

or joint through rates, the Conditions of Carriage or comparable offering of the originating

carrier shall, along with the exempt or common carrier rates, apply to such transportation

performed by CMQ unless specified otherwise in the terms of a rate quotation or separate

contract specifically covering the transportation involved. When such originating carrier does

not issue or have in effect such an offering, the terms of carriage contained herein shall apply.

Terms of these Conditions of Carriage not inconsistent with the origin carrier’s contract or

offering shall also apply.

4. The provisions of this Document are not applicable to shipments moving in TOFC or COFC

intermodal services.

5. If a shipment is tendered with different or additional terms and conditions submitted by

Shipper, such different or additional terms and conditions shall be deemed rejected by CMQ

unless electronically confirmed, or agreed in a document executed on behalf of CMQ by a

Marketing officer of CMQ, regardless of whether the shipment is accepted by CMQ.


ISSUED BY


RULE 130 – ROUTING VIA CENTRAL MAINE & QUEBEC RAILWAY

1. Except as otherwise specified, rates applicable via CMQ apply only over the most direct lines of

CMQ, forming the shortest possible CMQ mileage, from the first point at which CMQ receives

the shipment (from consignor or other railroad). CMQ reserves the right to actually handle

shipments via any route over CMQ lines. If customer requests movement over CMQ lines where

mileage exceeds the shortest possible CMQ distance, shipment will be subject to a combination

of rates applying via the route requested by customer.

2. When shipment is made in heavy duty flat cars, or in special train service, rates will be

applicable via the actual route movement.

RULE 140 – ABSORPTON OF CONNECTING LINE SWITCHING

Rates making reference to this document will include full absorption of connecting line reciprocal

switching unless otherwise agreed to in separate contracts, tariffs, or stated in a rate quotation. (See

item 1080 of CMQ 8000)

RULE 150 – BILL OF LADING

Service provided by CMQ and other rail carriers are subject to these Conditions of Carriage and shall also

be subject to the terms of the Uniform Bill of Lading as contained in the Uniform Freight Classification

UFC 6000 Series. Such services are subject to modifications as may from time to time be established

under separate agreement or by changes to the Conditions of Carriage, and apply regardless of whether

a Bill of Lading is actually executed pursuant to Rule 200.

Except where in conflict with the terms and conditions of a written agreement contract between CMQ

and Shipper, the terms and conditions of these Conditions of Carriage shall govern all the transportation

services provided by CMQ to Shipper. In the event of a conflict between the terms and conditions of

these Conditions of Carriage and the terms and conditions of a written contract between CMQ and User,

the terms and conditions of the written contract shall take precedence over these Conditions of

Carriage. The order of precedence for the application of terms and conditions for transportation services

provided by CMQ shall be as follows:

1. Written Contract

2. CMQ Customer Specific Rate Quotations

3. General Rate Tariffs and General CMQ Rate Quotations


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4. Conditions of Carriage

5. Rule 110 Publications

6. Uniform Bill of Lading

RULE 200 – TRANSPORTATION SERVICES

1. Shipper will notify CMQ when loading of equipment is completed and ready for movement or

when loaded equipment is made empty and ready for release to CMQ. Unless otherwise

mutually agreed upon by Shipper and CMQ, Shipper shall prepare and both parties shall execute

the transportation documents to cover the line haul transportation service requested by

Shipper. Shipper will provide instructions for the transportation services requested for the

shipment. CMQ will arrange for the transportation and delivery in accordance with instructions

shown on the Bill of Lading, which instructions shall be governed by the Conditions of Carriage.

2. Shipper will arrange separately with CMQ independent of the Bill of Lading for non‐line haul

accessorial services such as weighing, and such other services as may be referenced in the

publications listed in Rule 110. Unless specifically agreed to by CMQ, CMQ will not be liable for

any loss, damage, cost or expense arising in connection with such series performed by parties

other than CMQ.

RULE 210 – UNLOADING AND RELEASE OF EQUIPMENT AT DESTINATION

1. Upon arrival and placement of equipment for unloading at destination, consignee will be

responsible for unloading such equipment in a manner which does not damage the equipment,

and for releasing equipment in a condition clear of debris and material not part of such

equipment and suitable for reloading by another shipper (cars released in other than clean

condition will be subject to the provisions published in Tariff CMQ 8000 Series).

2. Whether CMQ is the delivering carrier, consignee must have advised CMQ Customer Service

Center by email, facsimile, EDI or other such form as may be required by CMQ, that the

equipment is unloaded and available for release. Information provided must include identity of

consignee, name of person furnishing data, and car initial and number. Equipment will be

considered released on the date and time such advice is received from the consignee.

RULE 230 – TRANSPORTATION CHARGES TO APPLY

1. The charges applicable to the transportation from origin to destination will be those established

by the governing quotation, contract or tariff on the bill of lading date for shipment. Any change


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to the information of the Bill of Lading (including, but not limited to, the shipper, consignee,

origin or destination) shall be invalid and without effect unless received and approved by

Central Maine & Quebec Railway’s Customer Service Department. Any such change to the bill of

lading must be transmitted to Central Maine & Quebec Railway in such form as may be required

by CMQ (including but not limited to, email, facsimile, EDI) and may be subject to additional

charges pursuant to CMQ 8000 Series.

2. If it is ascertained that the commodity shipped is not as described on the Bill of Lading or other

shipping document, CMQ at its option may

a. Return such shipment to shipper at origin at a charge equal to the charge that would

have applied had the commodity properly described and transported to the destination

named in the Bill of Lading;

b. Choose to move said shipment to the destination named in the Bill of Lading or other

shipping document at the transportation rate quoted; or

c. Choose to move said shipment to the destination named in the Bill of Lading or other

shipping document at a charge equal to the charge that would have applied had the

commodity been properly described, plus an additional charge of $350.00 USD.

RULE 240 – TRANSIT, DIVERSION, RECONSIGNMENT

Except as specifically agreed, CMQ will not provide transit or stop‐off privileges, but will provide

diversion or reconsignment as provided for in the publications listed in rule 110. Provisions of Rules 29

and 24 of UFC 600‐Series will not apply. (See item 100 for definition of transit, diversion, and

reconsignment)

RULE 250 – PAYMENT OF TRANSPORTATION CHARGES

1. Shipper or consignee shall be liable for payments of the transportation charges accruing on a

shipment as established by law and these Conditions of Carriage, and nothing herein shall limit

the right of CMQ to require at time of shipment the prepayment or guarantee of charges.

Shipper will pay CMQ if shipment is prepaid, or be responsible for payment if shipment is made

collect, and will pay immediately upon presentation of a bill therefore by CMQ unless credit has

been granted pursuant to Rule 300 of these Conditions of Carriage. If Shipper or consignee has

entered into an agreement for credit with CMQ, the terms and conditions of the credit

agreement will supersede any prepayment or payment upon demand requirement. If

transportation charges have not been prepaid, or shipper or consignee has not entered into an

agreement for credit with CMQ, CMQ shall not make delivery of shipment without payment or

guarantee by shipper or consignee of all charges. Placement of equipment by CMQ under credit


ISSUED BY


agreement for unloading shall be deemed acceptance of shipment for the purposes of incurring

freight charges under a credit agreement.

2. Acceptance of shipment by consignee or beneficial owner shall be deemed acceptance of

responsibility for payment of all charges accruing on the shipment, including, but not limited to,

demurrage and switching services performed at destination. Such payment shall be in such

currency that is the billed currency by CMQ and cannot be reduced to offset claims, damages to

property, or for other reasons.

3. Demurrage, switching and other assessorial and/or incidental charges are payable by Shipper

and/or Consignee as applicable pursuant to the publications set out in Rule 110.

4. All payments from customers in Canada or the United States should be mailed to the below

address. Ensure to provide backup documentation that lists your company’s name and what

invoices you are paying. If you do not send backup documentation, we will post the payment to

your account as an unapplied payment. The payment will not be applied until we receive

instructions to what you intended to pay. If you prefer to remit by wire, ACH or other means,

please contact us for the necessary information.

Central Maine & Quebec Railway 700 Main Street Suite 3 Bangor, ME 04401

RULE 270 – FUEL SURCHARGE: RAIL MILEAGE BASED/HIGHWAY DIESEL

FUEL

APPLICATION: this publication applies to all regulated common carrier line haul freight rates for traffic

originated on CMQ which is existing or established by CMQ on or after June 1, 2007.

In the event that the monthly average price per gallon of highway diesel fuel as determined below, the

(HDF Average Price) exceeds 271.0 cents, CMQ will apply a mileage‐based fuel surcharge to the line haul

rates and charges described above. The fuel surcharge will be applied to each qualifying shipment

having a bill of lading or other shipping instruction date on or after the first day of the second calendar

month following the calendar month of a given HDF Average Price determination.

The “HDF Average Price” for a month will be the average price for that month of the US No 2 Diesel

Retail Sales by New England Sellers, as determined and published by the US Department of Energy,


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Energy Information Administration1 (DOE‐EIA). That average price will, in calculating the HDF Average

Price, be rounded to the nearest 1/10th of a cent applying conventional rounding principles. The fuel

surcharge will be 1.3 cents per mile for every 3 cents per gallon, or portion thereof, by which HDF

Average Price for the calendar month two months prior to the calendar month of shipment exceeds

271.0.

IF DOE‐EIA ceases publication of the above information, CMQ will employ a suitable substitute source of

price or measure.

The mileage to be applied in calculating the fuel surcharge will be based on rail miles between origin,

interchange(s) and destination.

The following table reflects a sampling of the fuel surcharge within the included HDF Average Price

ranges.

Prior Time Period US Average Price of On‐Highway Diesel Fuel

Applicable Fuel Surcharge in Cents Per Rail Mile

271.0 ‐ 273.9 1.3

274.0 ‐ 276.9 2.6

277.0 – 279.9 3.9

280.0 – 282.9 5.2

283.0 – 285.9 6.5

286.0 – 288.9 7.8

289.0 – 291.9 9.1

292.0 – 294.9 10.4

295.0 – 297.9 11.7

298.0 – 300.9 13.0

301.0 – 303.9 14.3

304.0 – 306.9 15.6

307.0 – 309.9 16.9

310.0 – 312.9 18.2

Notes:

1. For each .03 cents per gallon increase thereafter, apply an additional 1.3 cents per mile.

1 The referenced DOE‐EIA publication can currently be found at www.eia.doe.gov. On the home page, select “Sources & Uses”, on the next page select “Petroleum* Other Liquids”. Select the “Data” tab, then “prices”. Select “Weekly Retail Gasoline and On Highway Diesel Prices”. For the “Area” select “New England” and for the “Period” select “Monthly”. Then refer to the data on the entitled “Diesel (On Highway)”. Monthly data is normally published Wednesday after the last Monday of a given month.


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2. The Fuel surcharge rate will be recalculated for each subsequent calendar month, as outlined

above.

3. Any fuel Surcharge to be applied under this authority will be removed or reduced when the US

Average Price of On‐Highway Diesel Fuel remains below the price which triggers a specific

Surcharge amount for the prior Time Period. In no case will the freight charge be reduced below

the Base Freight Charge nor will the application or removal of the Fuel Surcharge be retroactive.

Notification of the Fuel Surcharge amounts is sent out in email form at the beginning of each

calendar month. If you wish to receive this notification, please email Jim Speed at

[email protected]

RULE 280 – OVERCHARGE, OVER COLLECTION OR DUPLICATE PAYMENT

CLAIM PROVISIONS

Claim requirements/Time Limits – CMQ will accept a whole or partial claim for overcharge, over

collection or duplicate payment only if the claim is in writing and contains sufficient information for

CMQ to conduct an investigation, including the following:

Name of the claimant (which must be the payee

Claim number

Amount of the claim

Freight bill

Freight bill payment information

Supporting documents which show, among other things, that CMQ collected

all of the charges at issue and, in the case of overcharges,

o Rates

o Weight

o Commodity description

o Supporting authority (quotation, etc.) claimed to be applicable.

The claim must be filed within three (3) years of the date of delivery or tender of delivery by CMQ or

delivering rail carrier of the subject shipment.

Where the movement over CMQ forms a segment of a through movement involving other carries and

time limitations for filing overcharge claims fifer among the carries involved in the through movement,

the time limitation contained in the comparable offering of the price publishing carrier will apply for

overcharge claims against CMQ if inconsistent with these Conditions of Carriage.


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RULE 290 – LOSS OF AND DAMAGE TO SHIPMENTS

1. General

a. Unless modified in a transportation contract or a general or customer specific rate

quotation

CMQ will assume liability for loss and damage under the terms of 49 USC 11706

and the terms of the Uniform Bill of Lading as specified in Rule 150 herein

The level of liability assumed by the origin carrier will apply, provided, however,

that such level of liability shall not exceed the level of liability assumed under

the Carmack Amendment.

b. As a condition precedent to any right to recovery for loss or damage to cargo, a written

claim must be filed within nine (9) months after delivery of a shipment (or if delivery is

not made, within nine (9) months after a reasonable time for delivery). A claim must

include a demand for payment of a specific amount and information sufficient to

identify the shipment, as described in this Rule. A claim may be filed by either Sipper or

Consignee. Any other party who desires to file a claim with CMQ must first secure an

assignment of claim from the Shipper or Consignee.

c. CMQ does not guarantee delivery by a particular train or within a particular time and

does not guarantee rail services on any schedules, published, projected or implied.

CMQ will not be liable for failure to transport any shipment by any particular train or in

time for any particular market.

d. CMQ will not be liable for loss or damage caused by:

An act of God Public enemy or terrorism

The authority of law Riots Strikes Acts of civil disobedience An inherent quality or characteristic in the commodity

Natural shrinkage An act or default of Shipper, consignor, consignee, owner, or any contracting party, including but not limited to, the failure of the Shipper or any other party

to properly block or brace the lading’ or the stoppage an holding in transit of

lading at the request of the shipper, consignor, consignee, owner, or any

contracting party.


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e. CMQ’s liability will not extend beyond the actual physical loss or damage to the cargo

itself, including any costs reasonably incurred in efforts to mitigate the loss or damage.

f. In no event shall CMQ be liable for any incidental, special, indirect or consequential

damages whatsoever (including but not limited to lost profits, business interruption

expenses and shipper or consignee’s liability to their own customer for liquidated

damages or other damages arising out of or related to the services provided under

these Conditions of Carriage, even if advised of the possibility of such damages.

g. CMQ does not make any representations as to the suitability of cargo for rail

transportation. The Shipper acknowledges also that there are significant forces exerted

on the cargo in rail transportation that may require additional packing measures for the

cargo to move safely.

h. CMQ will not be liable for damage arising from atmospheric conditions when such

damage occurs to lading loaded in open‐top or on flatbed rail cars. Protective covering

sufficient to protect such lading just be furnished and installed by the Shipper. CMQ will

not be liable for the durability and suitability of the protective covering.

i. Claims or lawsuits for less than $250.00 will not be processed. No Claim will be paid if

the amount of the loss or damage is found to be less than $250.00 per shipment.

j. Failure of the destination railroad to inspect damaged cargo for any reason will not

relieve the claimant form the requirement of establishing that cargo was delivered in a

damaged condition and was properly blocked and braced. Failure of the destination

railroad to inspect damaged cargo for any reason will not be considered an admission of

liability by CMQ.

2. Filing of Claims

a. In any claim for loss or damage claimant shall include

Equipment initials and numbers

Shippers name

Consignee’s name

Notify party’s name

Shipping date, shipment origin and destination location

Commodity description and STCC or other identifying code

Records (such as Bill of Lading, Shipping Manifest, Purchase or Sales documents)

or certification to establish

1. Delivery to CMQ

2. The level of CMQ cargo claim coverage contracted for the shipment if

other than the Standard, and

3. Condition and quantity of cargo at origin

Supporting documentation for the amount claimed, such as weight and grade

certificates, repair bills or certified invoices


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b. Except where otherwise necessitated by wreck or derailment, claimant shall also include

in any such claim

Records verifying condition and quantity of the cargo when received at the destination stated in the shipping instructions

Origin and destination seal records, if applied, and Evidence of disposition of any damaged cargo in compliance with requirements

of this section.

c. Claimants must file any claims for loss or damage with:

Central Maine & Quebec Railway

ATTN: Manager, Freight Claim Settlement

700 Main Street, Suite 3

Bangor, ME 04401

d. Where a Bill of Lading covers only one railcar, a claim for loss or damage must be

submitted for the lading moving in only that one railcar and may not be combined into a

single claim with damage to lading moving in other railcars covered by other Bills of

Lading. Where loss or damage occurs to lading moving in more than one railcar and the

multi‐car movement is covered by a single Bill of Lading, one claim can be filed to cover

all damage to lading in railcars moving under that same Bill of Lading.

3. Lawsuits

a. As a condition precedent to any right of recovery, any lawsuit involving a claim for loss

or damage to cargo must be commenced within two (2) years one (1) day from the date

of declination of the claim.

b. Lawsuits shall be filed only in courts of competent jurisdiction and venue as set out in 49

USC Section 11706.

c. No party other than the Shipper or the Consignee shall have standing to bring a lawsuit

regarding a shipment moving under these Conditions of Carriage.

RULE 300 – EXTENSION OF CREDIT

1. Acceptance by CMQ of a tender of a shipment by Shipper does not constitute the extension of

credit by CMQ to Shipper or to a party responsible for payment of CMQ freight charges (Payor).

Credit shall only be extended through the Credit Department of CMQ. If CMQ extends credit, it

is granted only as a convenience to the Shipper or Payor and may be revoked by CMQ at any

time as to any shipment (including that in transit) without notice by CMQ. In the event of a

revocation of credit affecting any cars in transit, Shipper or Payor must either pay all charges for


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the cars in transit or make provision for payment, satisfactory to CMQ, before the cars will be

delivered. Any changes in Shipper’s or Payor’s ownership or financial condition which materially

will affect Shipper’s financial standing must be reported to CMQ’s Credit Department.

2. If your organization has been extended credit, payment terms are Net 15 days from the invoice date unless otherwise stated. These terms are for all freight, switching, diversions, re‐bills, extra train charges, storage, demurrage, car repair, car hire, car cleaning, fuel surcharge, and weighing.

3. Where credit has not been extended to Shipper or Payor, payment of transportation charges

must be made to CMQ in advance.

4. If your company is responsible for freight charges, there will be an additional charge for fuel

surcharge. The fuel surcharge will be added directly onto the freight bill. For calculation of Fuel

Surcharge, please refer to Rule 270.

5. Invoices will be emailed. Arrangements can be made to fax or mail invoices for those that

prefer. If you receive an invoice that you believe to be inaccurate please contact our Finance

and Accounting Department. Invoices are to be entered for dispute within 30 (thirty) days of

receipt. If payment of the invoice becomes due prior to the problem being resolved, please do

not withhold payment. Pay the portion of the invoice that is not in the dispute and include a

note detailing the portion that you believe to be in error. This will help ensure your account will

not be considered past due for the amounts that are in dispute.

6. CMQ shall have the right to recover from Shipper or Payor all reasonable costs of collection,

including but not limited to reasonable attorney’s fees, in the event of any violation of the credit

terms of CMQ by Shipper or Payor.

7. With regard to collect Bills of Lading, the existence of the Payor does not serve to relieve the

Shipper and Consignee for their responsibility for the payment of freight and other charges as

established by the Conditions of Carriage and law unless otherwise expressly stated by a written

agreement. The foregoing shall not affect the Shippers right to secure non‐recourse pursuant to

Section 7 of the Bill of Lading. With regard to prepaid Bills of Lading, the existence of the Payor

does not serve to relieve the Shipper of its responsibility for the payment of freight and other

charges as established by these Conditions of Carriage and law unless otherwise expressly

stated by a written agreement.

8. CMQ serves the right to assess a finance charge of 1.5% per month (18% per annum) against

unpaid line haul freight bills beyond credit terms. All uncollectable accounts will be referred to

collection agencies. Additionally, we submit past due open AR balances to a National

Commercial Credit Reporting Bureau on a monthly basis.


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RULE 310 ‐ MECHANICAL PROTECTIVE SERVICE (MPS)

1. Shipments requiring protection from heat or cold will be handled in accordance with rules and

provisions (other than charges for services) for protective services. Mechanical protective

services, including detention of equipment, are separate and distinct services, and charges

therefore will be in addition to charges applicable for line haul and other transportation

services. (See Rule 320)

Exception: CMQ will not provide portable heater service. To the extent cars are

received from connections with heaters already installed, such heaters will be allowed

to move through to destination without service by CMQ.

2. Shipper shall specify on the Bill of Lading whether the commodities loaded in the equipment are

perishable in nature requiring protection against heat or cold. If no such specification is made,

CMQ shall not be responsible for any loss or damage arising from the lack or failure of such

protection.

3. Subject to the conditions of this rule for shipper owned or leased cars where mechanical

protective service is required; CMQ will provide reasonable maintenance to mechanical

protective service (MPS) units including minor repairs, fuel, lubrication and other supplies. The

expense of operating repairs will be borne by the shipper, and the actual cost of labor for any

maintenance, service or repairs, and for material (plus 15% material handling charge), fuel,

lubricating oil and all other supplies furnished to such MPS units shall be billed against the

shipper directly by the railroad incurring the cost of furnishing such services.

RULE 320 – CHARGES FOR MECHANICAL PROTECTIVE SERVICES

Unless specifically indicated in a rate quotation or contract price for line‐haul transportation rates,

carload shipments originating on CMQ do not include a protective service charge payable to third

parties. To determine the charge applicable for mechanical‐protective service for equipment not owned

by CMQ, charges specified in service offerings by the owners or lessees of the MPS equipment will

apply.

RULE 330 – MIXED CARLOAD SHIPMENTS

Except as otherwise provided in written contracts, quotes or tariffs, when two or more commodities for

which the same or different rates apply are shipped in a single carload, and the weight of the


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predominant article is greater than 50% of the total weight of the shipment, the rate to be assessed on

the entire shipment will be that applicable on the predominant article.

RULE 420 – AGGREGATE RULE

Unless specifically authorized in writing by CMQ, point‐to‐point rates may not be combined to provide a

through rate.

Example: Customer has a rate quite from Point A to Point C (the A to C Rate). Customer also has

a rate quote from Point A to Point B (the A to B Rate) and from Point B to Point C (the B to C Rate). The

A to C Rate applies, and Customer may not combine A to B Rate with the B to C Rate unless specifically

authorized in writing by CMQ.

RULE 430 – INTERMEDIATE RATES

Except as otherwise specifically provided in individual contracts or rate quotations, rates will not apply

from or to points intermediate to the origins or destinations specified in such individual contracts or rate

quotations.

RUEL 440 – ALTERNATION OF RATES

1. Customer specific rates (contracts or specific quotes) will take precedence over open or non‐

customer specific rates (general quotes). Within each of those two categories, point‐to‐point

rates will apply regardless of any group or scale rates available, and group rates will be applied

to the exclusion of any scale rates available, and group rates will be applied to the exclusion of

any scale rates.

2. Where a rate authority contains more than one carload rate at varying minimum weights for the

same movement, the rate that produces the lowest charges for that authority will apply.

3. Unless otherwise agreed upon by CMQ and the purchaser of transportation subject to this

publication, where CMQ can serve both origin and destination (either directly or through

switching by another carrier), CMQ single‐line rates will apply to the exclusion of any joint‐line

rates.


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RULE 480 – DISCLAIMER OF CONSEQUENTIAL AND SPECIAL DAMAGES

Notwithstanding any provision in these Conditions of Carriage to the contrary and regardless of the

nature of the cause of action, whether in tort, contract or otherwise, in no event shall CMQ be liable for

any consequential, incidental, special, or indirect damages whatsoever (including but not limited to lost

profits, cost of capital or interruption of business expenses) arising out of the services provided under

these Conditions of Carriage, even if advised of the possibility of such damages.

RULE 500 – CHANGE IN PROVISION

Subject to all notice requirements established by law, CMQ reserves the right at any time to change the

terms and conditions of these Conditions of Carriage; provided, however, any such change shall be

effective only with regard to any transportation services provided under the Conditions of Carriage for

freight tendered after the effective date of the changes. CMQ will make available on its website these

Conditions of Carriage in their latest amended form. Shipper should review these Conditions of Carriage

before tendering freight to CMQ.

RULE 510 – PRIVATE EQUIPMENT

1. Upon request, CMQ may from time to time assist its customers in developing the appropriate

size and mix of the customer’s fleet of Private Equipment. In giving such assistance, CMQ does

not warrant or guarantee the accuracy and results of such assistance. All determination of size

and mix of the customer’s fleet of Private Equipment are solely and ultimately the responsibility

of the customer and are made at the sole risk and expense of customer.

2. CMQ does not guarantee or promise that Private Equipment will make or will be available to

make any particular Cycle Time (round trip between two points) or any particular number of

movements within any specified time period, regardless of whether CMQ had actual knowledge,

or would have reasonably know, of shipper’s past or expected Cycle Times, the size of shippers

Private Equipment fleet, or shippers and/or shippers customers commercial business.

3. Shipper is solely responsible for determining the suitability of the Private Equipment to move

the respective lading in issue. CMQ shall have no responsibility for the failure of Private

Equipment to adequately protect the lading where the damage to the lading is not due to any

act of CMQ but to the nature of the Private Equipment.


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4. CMQ will not pay mileage allowances on private equipment unless specifically agreed to in

advance in writing by a Marketing Officer.

RULE 520 ‐ SECURITY SEALS

CMQ will neither inspect shipments for seals and/or a security device intended to prevent unauthorized

access to a shipment, nor determines when a security device is appropriate. In the event that a

shipment requires special security measures (such as high security seals, shrink‐wrap, paper coverings

and the like), it is the duty of the Shipper to determine and take the appropriate security measures.

Documentation of the application of security devices at shipment origin is the responsibility of the

Shipper. In determining the extent, if any, of CMQ’s responsibility as a common carrier for loss, damage

or liability to a shipment, the absence of or damage to a seal without physical evidence of

contamination, loss or theft does not establish injury, loss or damage to a shipment.

RULE 530 – NON‐WAIVER

Any waiver on the part of CMQ of any term or condition of these Conditions of Carriage shall not

constitute a precedent, nor require CMQ to continue waiving such term or condition or to waive any

succeeding breach of the same or any other of the terms and conditions of these Conditions of Carriage.

No waiver or purported waiver on the part of MQ shall be deemed to bind CMQ unless made in writing

and signed by an authorized CMQ Marketing Officer.

RULE 540 – GOVERNING LAW

To the extent not governed by United States or Canadian law, the laws of the State of Maine shall

govern the construction and interpretation of these Conditions of Carriage and all rights and obligations

of the parties under these Conditions of Carriage.

RULE 550 ‐ NO THIRD PARTY BENEFICIARIES


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The services provided by CMQ under these Conditions of Carriage are intended solely for the benefit of

the shipper except to the extent expressly stated otherwise in these Conditions of Carriage and are not

intended for the benefit of any third party. Any standards of service contained in this Conditions of

Carriage, any transportation contract or offering are solely for the benefit of the shipper or contracting

party to the transportation contract or offering.

RULE 560 – NORMAL RAIL OOPERATIONS‐ORDER/NOTIFY SHIPMENTS

1. All services provided pursuant to these Conditions of Carriage will be provided by CMQ in

accordance with any applicable Federal Rail Administration (FRA) and Association of American

Railroads (AAR) guidelines, regulations and CMQ routing practice (including but not limited to

switching, coupling and humping). Specialized rail handling such as “do not hump”, speed

restrictions and equipment size are special rail services and not routine rail services. Unless

agreed to in writing by both CMQ and Shipper, any restrictions on rail handling placed by

Shopper upon a particular car (including but not limited to, “Do Not Hump” signs, notations as

to speed or other restrictions on a Bill of Lading , EDI notations) shall have no effect and be void.

Shippers desiring special handling must contact CMQ to arrange such special handling.

2. CMQ does not provide Order/Notify service. Bills of Lading or shipping instructions tendered to

CMQ in the form of an order/notify Bill of Lading will be handled as straight Bills of Lading.

Instructions to the effect of requiring CMQ to not complete delivery of a shipment until either

securing authorization for delivery from the shipper or some other party, surrender of the Bill of

Lading or notification by CMQ to the shipper or some other party shall have no effect and be

void regardless of whether such instructions are contained in a straight or an order notify Bill of

Lading’ and CMQ shall have no liability for delivering a shipment to the Consignee listed in the

Bill of Lading in such circumstances.

RULE 570 – SEVERABILITY

If any provision of these Conditions of Carriage is held invalid by a court or governmental entity of

competent jurisdiction, such provision shall be severed from these Conditions of Carriage and to the

extent possible, the Conditions of Carriage shall continue with regard to the remaining provisions.

RULE 580 – CARGO OWNERS AND COLLATERAL PARTIES


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With regard to shipments moving under some type of limitation of liability, the rates, levels of liability

and other terms and conditions governing the rail transportation agreed upon between CMQ and

Shipper represents the essential consideration to the parties. Frequently, the contract for the rail

portion of a movement may be only one contract in a series of other contracts between other parties.

Pursuant to Rule 550 none of these other parties are intended third party beneficiaries of Shipper and is

limited to the terms and conditions set out by these Conditions of Carriage and the governing rail

contract. The Shipper acknowledges that the bargain with CMQ neither contemplates or creates liability

on the part of CMQ toward any other party, whether in tort or contract, nor places upon CMQ any

liability in excess of the liability assumed by CMQ under these Conditions of Carriage and the governing

rail contract. By tendering the cargo to CMQ, the Shipper agrees to indemnify CMQ against any claim by

the cargo owner or any other person or agent for any amounts that exceed the limited liability assumed

by CMQ under these Conditions of Carriage and the governing rail contract for loss or damage to the

lading plus the reasonable cost of defense and attorney’s fees for CMQ.

RULE 590 – CMQ OWNED OR LEASED CARS USEF FOR ALTERNATIVE

ROUTING

When cars are supplied by CMQ for customers loading and those cars are billed over a competing route

set which does not include CMQ, a charge of $500 USD will apply unless CMQ has provided written

permission to the contrary. Charges will be billed to the party responsible for providing the routing

information.

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